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Innovation in the car finance market

18 January 2018
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At Shawbrook, we like to challenge convention and put our customers at the heart of everything we do, and there is no exception to this with the launch of our new motor finance product – Flexiloan. This has been developed initially as a white label product in partnership with RAC, Britain’s longest-serving breakdown company.

Shawbrook together with RAC are the first to go-to-market in the UK with the Flexiloan – providing an innovative alternative to traditional motor finance that could benefit the consumer much more.

So, what is the flexiloan? Conventional motor finance products like Personal Contract Purchase (PCP) gives consumers options for a low deposit, low monthly repayments and a choice on how to pay off the remainder of the balance but the drawbacks are that it can be quite inflexible with mileage limits and unforeseen charges at the end of the contract. Flexiloans offer all of the benefits of PCP but much more, like the unique ability to be able to buy a car at least two years old (and up to 9 years old) from a dealer or private seller and complete ownership of the car from day one.

Key features of the Flexiloan are:

  • Choose a car that is at least two years old (and up to nine years old) on sale anywhere in the UK – you’re not tied to one specific manufacturer or dealer
  • Easily see how changing one part of your payment affects other parts – complete transparency of what you’ll pay
  • Full ownership of the car from day one
  • No extra charges payable at the end of the finance period
  • Know your interest rate via a quick ‘soft’ credit check which has no effect on your credit score

Paul Went, Director of Products and Markets at Shawbrook Bank said:

“We saw a need in the used car market for a finance product that offers the benefits of traditional car finance products, such as PCP and HP, but gives the car owner the same control as taking an unsecured personal loan for their car purchase. As RAC has a long history of innovating to help drivers, they were the obvious choice of partner to launch this exciting new product with.”